Unity Q2 2023 Earnings Report
Key Takeaways
Unity's Q2 2023 results showed strong performance with revenue of $533 million, representing 80% year-over-year growth. The company's GAAP net loss was $193 million, while adjusted EBITDA reached $99 million. Free cash flow for the quarter was $33 million, and adjusted EBITDA margins reached 18.5%.
Revenue of $533 million, an increase of 80% year-over-year.
GAAP net loss was $193 million and adjusted EBITDA was $99 million, an improvement of $136 million year-over-year.
Free cash flow for the quarter was $33 million, which is reduced by one-time payments related to restructuring.
Adjusted EBITDA margins of 18.5%, which compares to 6.5% in the first quarter of this year and negative 12.7% in the second quarter of the prior year.
Unity
Unity
Forward Guidance
For the third quarter, Unity is guiding revenue of $540 to $550 million and adjusted EBITDA to $90 to $100 million. For the year, Unity is increasing the low-end of the revenue guide by $40 million to $2,120 - $2,200 million and guiding adjusted EBITDA to $320 to $340 million.
Positive Outlook
- Assuming that the game ads market will be relatively flat throughout the balance of the year, other than normal seasonality.
- Assuming a continuation of a soft market in China.
- Assuming additional planned deceleration in Professional Services.
- Expect 477 million of fully diluted shares at the end of the third quarter and 488 million at the end of the fiscal year.
- Continue to be committed to reach $1 billion adjusted EBITDA run-rate by the end of 2024.
Challenges Ahead
- Ongoing uncertain economic environment.
- Game ads market will be relatively flat throughout the balance of the year, other than normal seasonality.
- Continuation of a soft market in China.
- Additional planned deceleration in Professional Services.
- These estimates do not include the impact of any future repurchases that we may choose to make under our previously announced stock repurchase program.